All major virtual coins operating on the cryptocurrency market have experienced a rapid decrease in value, while the US Department of Justice has started an investigation related to cryptocurrency price manipulation. The current number on coinmarketcap has also drastically declined.
On May 23, Bitcoin value fell below $8000 mark, reaching its multiweek minimum of $7442, according to Kraken crypto exchange. As for altcoins, Ethereum price has dropped to $586, losing more than 10%, while Litecoin is down 8.2% at the level of $119. The most significant loss has been suffered by Bitcoin Cash, which is now trading below $1000, 15.8% fall.
The Department of Justice (DOJ) has decided to explore carefully the matter of cryptocurrency manipulation. There is a suspicion that the crypto market traders are playing around with the price of Bitcoin and other crypto coins.
In fact, the financial market regulator aims at investigating illegal activity that can be a reason for crypto price changing, for example, spoofing or expanding fake information in order to make other traders buy or sell trade coins, Bloomberg reports. However, there is no evidence proving that price drops are connected to the investigation held by the DOJ.
Tom Lee, an analyst for Fundstart Global Advisors, who is known for his "bullish" attitude towards cryptocurrency, said in an interview with CNBC that his target for Bitcoin price remains at the level of $25,000. He explains the reason for a fall on the market can be the fact that investors have chosen to wait for a later clarification of the regulatory environment.
Other traders are less optimistic. Thus, Jani Ziedins, an analyst from Cracked.Market believes that the Bitcoin rate will go down, overcoming support levels.
“Last week’s $9k support has turned into this week’s $8k support. And thus far it is giving every indication that $7k will become next week’s support. I hope you see the trend here,” he wrote in a